TUI Group Factbook December 2020 TUI GROUP - REASONS TO INVEST & BUSINESS OVERVIEW
TUI GROUP | Factbook | December 2020 Reasons to invest
Fulfilment distinguishes TUI from 1 Holidays remain a high priority 4 competition - ability to take risks and shape markets
Leading, trusted brand with 2 Integrated business model with strong 5 customer base and distribution power differentiated products
TUI is strategically well positioned to Accelerated digital transformation due 3 6 deliver sustainable growth to C-19 pandemic
TUI is well positioned to benefit from market recovery post C-19
Fulfilment: Strategic control of the value chain – ability to take risks and shape market 3 TUI GROUP | Factbook | December 2020 World arrivals expected to show strong increase in 2021 & return to 2019 levels in 2022
ACTUAL DEVELOPMENT FORECAST2 COMMENTS
World arrivals both leisure and business travel (bn)1 Return to . MINTEL Holiday Review Report FY19 levels (January 2021) findings: 1,5 1,4 1,5 1,3 1,3 o “Travel operators should prepare COVID-19 for a surge in bookings when the crisis UK government unveils its re- opening roadmap” 0,7 o 32% of UK adults plan to take a holiday this year but do not know when they will book yet
2017 2018 2019 2020e 2021e 2022e
Leisure travel expected to recover sooner than business travel in a consolidated market
Source: Euromonitor International, Travel 2021 edition I 1 Arrivals refer to non-resident overnight visitors to the country of reference, travelling for business and leisure purposes, excluding same day visitors. If a person visits the same country several times each year, each trip is recorded as a separate arrival. If a person visits several countries during a single trip, their arrival in each country is recorded separately. I 2 Euromonitor baseline forecast, 9 July 2020 4 TUI GROUP | Factbook | December 2020 Industry fundamentals from TUI’s perspective
• Leisure travel will return to previous levels with • Short-term overcapacities expected packages remaining important • Strong hotel brands will benefit • Later booking profile expected for duration of crisis • Best-in-class sales capabilities key for growth: Focus • Long-haul will recover quickly once vaccine available on brand, product and digital capability • Own airline is essential in an end-to-end model
CRUISES TUI MUSEMENT
• Market expected to recover strongly when vaccine • Market will return to growth with experiences available remaining important • Old tonnage will leave the market • Consolidation and digitalisation will accelerate • Supply shortage to persist • Platform strategy will drive growth
5 TUI GROUP | Factbook | December 2020 TUI strongly positioned to be a key beneficiary beyond the crisis
INTEGRATED BUSINESS MODEL WITH MARKETS & HOLIDAY TOURISM SECTOR FUNDAMENTALS DIVERSIFIED CUSTOMER BASE & AIRLINES EXPERIENCES REMAIN ATTRACTIVE & UNCHANGED DISTRIBUTION POWER 21m customers 433 Hotels1 ~140 aircraft2 17 Cruise ships2 Own & 3rd party TRANSFORMATION TO LEANER & STRONG BRAND PROPOSITION distribution 1m “things to do” MORE AGILE STRUCTURE 3 % 30% of profit pool % 70% of profit pool3
STRENGTHENED POSITION FROM ACCELERATED DIGITALISATION / FURTHER CONSOLIDATION GLOBAL REALIGNMENT PROGRAMME
Transformed TUI will benefit from key market position, driving return to profitable growth
Note: All data as at Sep 2019 unless otherwise stated I 1 Includes Group hotels and 3rd party concept hotels as at Sept 2020 | 2 As at Sept 2020 | 3 Excluding cost impact of 737 MAX in Markets & Airlines segment 6 TUI GROUP | Factbook | December 2020 Summary: Drive transformation and return to profitable growth
FY20: STRONG START & C-19 FY21: TRANSITION FY22+: PROFITABLE GROWTH
• Exceptional start to S20 trading • Bookings uplift and revenue recovery to • Trusted, leading brand with differentiated • Swift and disciplined liquidity correlate with easing of travel restrictions products strongly positioned to benefit management • Resume growth trajectory from FY19 from expected market consolidation • 2.3m1 customers departed on reopening • Deliver on Global Realignment Programme • Cost base savings from Global Realignment • Pent up demand evident transforming cost structure Programme visible • FY20 loss solely driven by C-19 travel ban • Digital acceleration prioritised • Structurally leaner and more agile • Rebuild a robust financial profile • Digital initiatives drive further profitability
Customers want to resume Enhance Profitable growth - stronger, leisure travel lean and agile structure less capital intensive & more digital
1 Departed PAX between mid June & end of October
7 TUI GROUP | Factbook | December 2020 GLOBAL REALIGNMENT PROGRAMME
TUI GROUP | Factbook | December 2020 Global realignment programme drives TUI’s strategic initiatives…
REDUCE COSTS REDUCE CAPITAL INTENSITY DRIVE DIGITALISATION
• Accelerate Transformation project • Asset-right strategy in Hotels & Cruises • Increase accommodation only, seat • Merge tasks and organizations across the • Reduction of investment levels only and dynamic packaging Group • Rightsizing of airlines & order book; • Drive online strategy • Global consolidation of IT structures restructuring • Enhance transformation of DX to a • Targeting to permanently reduce our • Divest/address non-profitable activities digital business overhead cost base by 30% across the • Grow TUI ecosystem Group • Impact on potentially 8,000 roles globally • Save costs while enhancing quality
Overall cost reduction target increased from ~€300m to ~€400m p.a. with first benefits expected in FY21
9 TUI GROUP | Factbook | December 2020 …and is on track to meet ~€400m p.a. cost reduction target
PILLARS RECENT PROGRESS PHASING
• FY20 H1: Announced programme REDUCE COSTS with potential impact on 8k roles P&L view ~€400m p.a • ~5k reduction in FTEs to date
• TUI Musement: ~2k FTE reduction €303m to date (~25% reduction) as part REDUCE of transformation to ”digital first“ model CAPITAL INTENSITY ~€120m • TUI fly Germany: Restructuring plan ongoing to reduce number of ~€40m aircraft & bases DRIVE • Retail & core functions: Over half FY20A FY21e FY22e FY23e DIGITALISATION of planned savings already achieved Per annum benefits SDI
Cost improvements delivering significant savings across the Group
10 TUI GROUP | Factbook | December 2020 GROUP FINANCIALS
TUI GROUP | Factbook | December 2020 Income Statement – Key Figures
FY20 FY20 FY19 In €m IFRS 16 IAS 171 adjusted2 • FY20 results significantly affected by the COVID-19 Revenue 7,943.7 7,952.9 18,928.1 related travel suspension in Q3 and limited restart Underlying EBITDA -1,615.0 -2,242.6 1,359.5 potential in Q4 Depreciation -1,382.0 -790.2 -466.0 Underlying EBIT2 -2,997.0 -3,032.8 893.5 Adjustments (SDI's and PPA) 69.6 70.1 -124.9 EBIT -2,927.4 -2,962.7 768.6 Net interest expense -275.9 -176.5 -77.0 EBT -3,203.3 -3,139.2 691.6 Income taxes 64.2 61.4 -159.6 Group result continuing operations -3,139.1 -3,077.8 532.1 Minority interest -9.4 -9.4 -115.7 Group result after minorities -3,148.4 -3,087.2 416.4 Basic EPS (€, continuing) -5.34 -5.23 0.71
1 FY20 financials based on a pro-forma calculation according to IAS 17 | 2 FY19 figures adjusted as a result of revised classification of certain expense items as cost of sales and revisions to PPAs please refer to page 155 of the Annual Report for further details
12 TUI GROUP | Factbook | December 2020 Cash Flow & Movement in Net Cash
FY20 FY20 FY19 In €m IFRS 16 IAS 17 adjusted1 EBITDA underlying -1,615.0 -2,242.6 1,359.5 Adjustments 260.0 242.1 -82.1 EBITDA reported -1,355.0 -2,000.5 1,277.4 Working capital -1,351.0 -1,260.5 -25.6 Other cash effects -234.6 -216.7 138.4 At equity income 193.3 193.3 -297.5 Dividends received from JVs and associates 7.1 7.1 244.6 Tax paid 56.1 56.1 -117.5 Interest (cash) -226.8 -127.4 -80.2 Pension contribution & payments -112.7 -112.7 -143.1 30 Sep 2020 30 Sep 2020 30 Sep 2019 Operating Cash flow -3,023.5 -3,461.3 996.6 In €m IFRS 16 IAS 17 Net capex -518.9 -518.9 -805.9 Opening net (debt)/cash as at 1 October -910 -910 124 Net financial investments 626.7 626.7 -313.4 Net pre-delivery payments 41.5 41.5 0.8 FCF after Dividends -3,193 -3,631 -597 Free Cash flow -2,874.2 -3,312.0 -121.9 Asset Finance -569 -377 -337 Dividends -318.6 -318.6 -475.4 Other 265 16 -100 Free Cash flow after Dividends -3,192.8 -3,630.7 -597.3 Disposal group - Hapag-Lloyd Cruises 352 345 Cash flow from financing 2,695.2 3,133.1 -193.4 Total net debt before lease liabilities first -4,055 -4,557 -910 o/w Payments received2 3,389.0 3,389.0 39.0 time adoption o/w Payments made3 -693.8 -255.9 -232.4 Lease liabilities first time adoption -2,366 - - Total Cash Flow -497.6 -497.6 -790.6 Closing net (debt)/cash as per Balance Sheet -6,421 - -
1 FY19 figures adjusted as a result of revised classification of certain expense items as cost of sales and revisions to PPAs please refer to page 155 of the Annual Report for further details | 2 From the issue of bonds, commercial paper and drawings from other financial facilities | 3 For redemption of loans, commercial paper and other financial liabilities 13 TUI GROUP | Factbook | December 2020 Balance Sheet
30 Sep 2019 In €m 30 Sep 2020 adjusted1 Non-current assets 12,647.8 11,947.9 Current assets 2,693.4 4,270.2 Assets 15,341.1 16,218.1 Subscribed capital 1,509.4 1,505.8 Capital and revenue reserves -1,957.8 1,948.3 Non-controlling interest 666.5 711.4 Equity 218.1 4,165.6 Non-current provisions 1,895.7 1,810.6 Current provisions 421.6 394.3 Provisions 2,317.3 2,204.9 Non-current financial liabilities 3,691.7 2,457.6 Current financial liabilities 577.3 224.6 Financial liabilities 4,269.0 2,682.2 Non-current lease liabilities 2,712.6 - Current lease liabilities 687.3 - Lease liabilities 3,399.9 - Other non-current liabilities 503.6 472.6 Other current liabilities 4,608.6 6,589.6 Other liabilities 5,112.2 7,062.2 Liabilities related to assets held for sale 24.5 103.1 Liabilities 15,123.0 12,052.5 Equity and Liabilities 15,341.1 16,218.1
1 2 FY19 figures adjusted as a result of revised classification of certain expense items as cost of sales and revisions to PPAs please refer to page 155 of the Annual Report for further details
14 TUI GROUP | Factbook | December 2020 Gross Leverage Ratio
LEVERAGE RATIO PAST LEVERAGE LEVEL ACHIEVED
FY19 €m FY20 IFRS 16 IAS 17
Gross debt 7,669 2,682 3.50x **2.7x if to Bonds 299 298 excluding 3.25x MAX3** to Liabilities to banks 3,954 870 2.75x 3.00x 3.00x to Finance lease - 1,495 3.3x 2.50x 2.7x 3.0x to Lease liabilities under IFRS161 3,400 - 2.5x 2.25x 2.25x to Other financial liabilites 16 19 Pensions 652 758 FY16 FY17 FY18 FY19 Discounted value of operating leases2 - 2,580
Debt 8,321 6,020 Denotes top of TUI Denotes bottom of TUI target range Reported EBITDA (IFRS 16) / target range -1,355 1,990 EBITDAR (IAS 17) Leverage Ratio n.m 3.0x
Solid & healthy balance sheet – Return to a gross leverage ratio target of less than 3.0x
1 Including existing finance leases under IAS 17 ( ~€1,514m) | 2 At simplified discount rate of 0.9% at 30.09.2019 | 3 Indicative pro forma calculation of gross leverage excluding MAX impact
15 TUI GROUP | Factbook | December 2020 HOTELS & RESORTS
TUI GROUP | Factbook | December 2020 Hotels & Resorts Summary FY20 HOTEL BEDS BY REGION (%) FY20 FY20 FY19 Key Facts IFRS 16 IAS 17 IAS 17 7% (C-19) (C-19) Caribbean 20% 30% Western Med. Total Revenue (€m) 751 751 1,512 Total Eastern Med. 266,002 North Africa o/w External Revenue (€m) 402 402 660 Other 21% Underlying EBITDA (€m) -58 -195 563 22%
Underlying EBIT (€m) -395 -400 452
o/w Equity result (€m) -79 -79 97 FINANCING STRUCTURE (%) Number of hotels1 433 433 411 Ownership Management Number of beds2 266,002 266,002 262,644 42% Total 46% Lease Capacity (‘000)3 24,013 24,013 42,094 355 Franchise
Revenue/bed (€)4 71 71 66 1% 11% 5 Occupancy (%) 66 66 82 Plus 78 3rd party concept hotels = 433 total hotels
1 Includes 78 third party concept hotels (355 Group hotels reflect the Hotel & Resorts segment in FY20) For FY19, includes 57 third party concept hotels (354 Group hotels reflect the Hotel & Resorts segment) | 2 Based on 355 Group hotels for FY20 and 354 Group hotels for FY19 | 3 Group owned or leased hotel beds multiplied by opening days per annum | 4 Board & Lodging revenue divided by occupied beds | 5 Occupied beds divided by capacity 18 TUI GROUP | Factbook | December 2020 Hotels & Resorts Summary by brand
Key figures FY20 IAS 17 (C-19) Total External Revenue (€m) 272.9 57.2 - 402.4 Underlying EBIT (€m) 49.7 -102.7 -35.4 -400.0 Number of hotels2 99 25 33 355 Number of beds 101,528 15,321 30,610 266,002 Capacity (k)1 11,144 2,083 2,543 24,013 Average occupancy3 % 72 62 70 66 Average revenue per bed4 € 67.3 100.2 121.9 71.0
Key figures FY19 IAS 17 Total External Revenue (€m) 415.1 103.1 - 660.0 Underlying EBIT (€m) 326.2 54.7 9.9 451.8 Number of hotels 99 23 32 354 Number of beds 90,460 13,927 30,080 262,644 Capacity (k)1 18,056 3,333 4,379 42,094 Average occupancy3 % 88 73 77 82 Average revenue per bed4 € 64.2 93.5 117.9 66.1 1 Group owned or leased hotel beds multiplied by opening days in the period | 2 Group hotels count as at 30 September 2020 | 3 Occupied beds divided by capacity | 4 Board & Lodging revenue divided by occupied beds
19 TUI GROUP | Factbook | December 2020 Hotels & Resorts RIU – Key figures FY20
Riu in Riu in RIU 100% view1 Total Total o/w RIUSA II o/w Riu Hotels TUI accounts o/w RIUSA II o/w Riu Hotels TUI accounts In €m IFRS 16 (fully consolidated) (consolidated at equity) IAS 17 (fully consolidated) (consolidated at equity) IFRS 16 IAS 17 Total Revenue 675 449 226 449 675 449 226 449 Underlying EBIT 73 45 28 50 73 45 28 50 EBIT Margin 11% 10% 11% 10% EAT 28 10 40 30 10 o/w EAT to TUI 19 14 5 19 21 16 5 21 ROIC (incl. Goodwill) 2% ROIC (excl. Goodwill) 3% HOTEL BEDS BY REGION (%) FINANCING STRUCTURE (%)
11% 5% 26% 1% 14% Western Med. Ownership Total Caribbean 99 Management 101,528 41% Hotels 53% North Africa Lease Other Franchise 49%
1 Unaudited figures. FY20 includes Mauritius, Tanzania and Cape Verde hotel beds within N. Africa (previously in Other)
20 TUI GROUP | Factbook | December 2020 Hotels & Resorts RIU – Key figures FY19
RIU 100% view1 Total o/w RIUSA II o/w Riu Hotels Riu in In €m IAS 17 (fully consolidated) (consolidated at equity) TUI accounts Turnover 1,169 850 319 850 Underlying EBITA 397 283 114 326 EBITA Margin 34% 33% EAT 315 226 89 o/w EAT to TUI 156 113 43 156 ROIC (incl. Goodwill) 17% ROIC (excl. Goodwill) 20% HOTEL BEDS BY REGION (%) FINANCING STRUCTURE (%) 5% Western Med. Management 19% 3% 27% North Africa Ownership 99 40% Total Caribbean Lease 90,460 Hotels 5% Other 52% Franchise 49%
1 Unaudited figures
21 TUI GROUP | Factbook | December 2020 Hotels & Resorts Robinson – Key figures FY20
(€M) FY20 FY20 FY19 Robinson 1 1 1 IFRS 16 IAS 17 IAS 17 In TUI accounts (C-19) (C-19) Total Revenue 147 147 257 Underlying EBIT -99 -103 55 EBIT margin n.m n.m 21% ROIC n.m n.m 11%
Robinson Club Sarigerme Park, Turkey HOTEL BEDS BY REGION (%) FINANCING STRUCTURE (%)
12% 26% 26% Western Med. Ownership North Africa 16% Total 25 Management Eastern Med. 15,321 Clubs Lease Other 14% 72% 34%
1 Unaudited figures
22 TUI GROUP | Factbook | December 2020 Hotels & Resorts Blue Diamond – Key figures FY20
(€M) FY20 FY20 FY19 Blue Diamond 1 1 1 IFRS 16 IAS 17 IAS 17 100% view (C-19) (C-19) Revenue 253 253 456 EBIT -29 -30 73 EBIT margin n.m n.m 16% EAT -73 -74 19 o/w EAT to TUI (49%) -36 -36 9 Royalton Punta Cana, Dom Rep
HOTEL BEDS BY LOCATION (%) FINANCING STRUCTURE (%) 5% Cuba 9% 4% Jamaica St Lucia Ownership Total Dom Rep 48% 33 15% 30,610 Mexico Hotels 52% Management 57% Antigua 3% Other 8%
1 Unaudited figures
23 TUI GROUP | Factbook | December 2020 CRUISE
TUI GROUP | Factbook | December 2020 Cruises Summary by brand
Key figures FY20 IAS 17 (C-19) MARELLA CRUISES Revenue (€m)1 - 184.7 287.9 Underlying EBIT (€m) -74.22 5.7 -254.2 Passengers (k) 308 15 141 Fleet Size3 (Group Total 17) 7 5 5 Total Berths4 17,780 1,548 8,943 Occupancy % 88.1% 70.2% 95.6% Av Daily Rate (€ for TC/HP and £ for Marella) 141 601 1465
Key figures FY19 IAS 17 MARELLA CRUISES Revenue (€m) - 305.2 660.6 Underlying EBIT (€m) 202.6 1 43.0 120.4 Passengers (k) 663 25 338 Fleet Size3 (Group Total 18) 7 5 6 Total Berths4 17,780 1,318 10,195 Occupancy % 100.7 78.9 100.4 Av Daily Rate (€ for TC/HP and £ for Marella) 174 641 1495
1 TUI Cruises revenue not included in TUI accounts under equity treatment. Please refer to 100% view for TUI Cruises revenue on next slide.. | 2 Equity result and inclusive of Hapag-Lloyd Cruises result from FY20 Q4 | 3 Fleet count as at 30 September 2020 | 4 Static count as at 30 September 2020 | 5 Inclusive of transfers, flights and hotel due to the integrated nature of Marella Cruises 25 25 TUI GROUP | Factbook | December 2020 Cruises TUI Cruises - Key figures – 100% View FY20 FY20 FY19 1 1 TUI Cruises 100% IFRS 16 IAS 17 IAS 17 (C-19) (C-19) Revenue 647 647 1,445 • As of July 2020 (FY20 Q4) TUI Cruises JV entity includes the result of Hapag-Lloyd Cruises Underlying EBIT -89 -89 465 EBIT Margin n.m n.m 32% EAT (100% TUI) -148 -148 405 o/w TUI EAT (50%) -74 -74 203 ROIC n.m n.m 18% ROE n.m n.m 56%
1 Unaudited figures
26 TUI GROUP | Factbook | December 2020 TUI’s cruise fleet development - capacity growth financed off-balance sheet (JV)
OFF-BALANCE SHEET FINANCING AS BRAND / OWNERSHIP FLEET DEVELOPMENT PREFERRED OPTION
Off-balance sheet: JV Current fleet: Exit FY23
Deliveries: • Funded by JV FY23 FY24 FY26 • No CAPEX requirements for TUI
Current fleet:
Deliveries: Summer FY21
On balance sheet Current fleet: • Funded by reinvesting disposal proceeds
Fleet and pipeline as at 31 December 2020
27 TUI GROUP | Factbook | December 2020 Cruises TUI Cruises Fleet
Mein Schiff Herz Mein Mein Mein Mein Mein Mein Mein New Build 1 New Build 2 (Prev MS2) Schiff 1 Schiff 2 Schiff 3 Schiff 4 Schiff 5 Schiff 6 Schiff 7
1,912 2,894 2,894 2,506 2,506 2,534 2,534 2,894 TBC TBC BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL 1997 May 2018 Feb 2019 June 2014 June 2015 July 2016 June 2017 New build New build New build CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION 2023 2024 2026 CONSTRUCTION CONSTRUCTION CONSTRUCTION
Fleet and pipeline as at 31 December 2020
28 TUI GROUP | Factbook | December 2020 Cruises Hapag-Lloyd Cruises Fleet
Europa Europa 2 Hanseatic Hanseatic Hanseatic nature inspiration spirit
4081 5161 230 230 230 BERTHS BERTHS BERTHS BERTHS BERTHS Wholly owned Wholly owned Wholly owned Wholly owned Wholly owned OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL 1999 2013 New build New build New build CONSTRUCTION CONSTRUCTION May 2019 October 2019 2021 CONSTRUCTION CONSTRUCTION CONSTRUCTION
Fleet and pipeline as at 31 December 2020 | 1 Additional sofa-bed in most of the suites (usable for persons up to the age of 6, 10, 12 or 15 years)
29 TUI GROUP | Factbook | December 2020 Cruises Marella Cruises Fleet
Marella Marella Marella Marella Discovery Discovery 2 Explorer Explorer 2
1,836 1,836 1,924 1,814 BERTHS BERTHS BERTHS BERTHS
Finance Lease exp. Wholly owned Wholly owned Wholly owned 2026 OPERATING MODEL OPERATING MODEL OPERATING MODEL OPERATING MODEL 1994 1996 1995 1995 CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION May 2018 April 2019 LAUNCH LAUNCH
Fleet and pipeline as at 31 December 2020
30 TUI GROUP | Factbook | December 2020 TUI MUSEMENT
TUI GROUP | Factbook | December 2020 TUI Musement: Tours & activities segment positioned to drive future growth > 170k excursions, activities, tickets and transfers available in more than 140 countries
• Pioneer in digitalisation of currently fragmented, largely offline Tours & Activities market Delivery/Updates APP FEATURES since March • Focus of targeted investment spend during C-19 Search & Book EAT 1 Future-proofed during C-19 hiatus – enhanced integration Geo-Location with TUI App platform, alongside increasingly digital, ‘browse excursions near you’ contactless & user friendly interaction Recommended Products
• Caters to domestic Tours & Activities demand App Exclusive Discounts Profit potential even when borders are closed Dynamic Merchandising Local distribution further enhanced by Booking.com Bookflow Messaging partnership; 13 new destinations in Dec Share & Shortlist Soon
Ratings & Reviews Soon • Set to deliver growth post C-19 Poised for significant growth in 2021 and beyond Booking Management Soon Scalable model aligned with and supplementary to asset light strategy
1 Excursions, Activities and Tours
32 TUI GROUP | Factbook | December 2020 TUI Musement (previously Destination Experiences) Key figures FY20 More than 3.4 4,700 million excursions Colleagues Sold (FY19: 9,500) (FY19: 9.7m)
>11 >5.5 million transfers million guests operated (FY19: >16m) (FY19: >31m)
Number of Operating in vehicles 135 >1,600 Destinations (FY19: 122) (FY19: 2,000)
FY19 undistorted by impact of C-19
33 TUI GROUP | Factbook | December 2020 MARKETS & AIRLINES
TUI GROUP | Factbook | December 2020 Markets & Airlines Key figures by Markets Key figures FY20 (IAS 17) Northern Region Central Region Western Region Total Markets & Airlines Customers (k)1 2,438 3,230 2,388 8,057 External Revenue (€m) 2,467 2,862 1,348 6,677 Underlying EBIT2 (€m) -975 -620 -441 -2,036 EBIT margin (%) n.m n.m n.m n.m Direct Distribution Mix (%) 91 54 79 73 Online Mix (%) 67 26 60 49 Number of aircraft 62 35 42 139
Key figures FY19 (IAS 17) Northern Region Central Region Western Region Total Markets & Airlines Customers (k)1 7,428 7,830 5,816 21,075 FY19 includes impact External Revenue (€m) 6,355 6,417 3,237 16,009 of MAX grounding of Underlying EBIT2 (€m) 59 102 -29 132 -€293m EBIT margin (%) 0.9 1.6 n/a 0.8 Direct Distribution Mix (%) 94 53 76 74 Online Mix (%) 67 23 57 48 Number of aircraft 68 37 45 150
1 Excludes Cruise and strategic joint ventures in Canada and Russia, this would be 24m in FY19 and 10m in FY20 if including Cruise and strategic joint ventures in Canada and Russia | 2 FY20 Includes impact from net hedging ineffectiveness for Northern Region of €170m, for Central Region of €50m and for Western Region of €32m. FY19 Includes impact of MAX grounding for Northern Region of €170m, for Central Region of €27m and for Western Region of €96m 35 TUI GROUP | Factbook | December 2020 Aircraft Commitments by Financing Type
Operating Lease Finance Lease Owned Held for Sale Total
As at 30 September 2019 120 25 5 - 150
Order book financing - 2 - - 2
External Lessor deliveries 2 - - - 2
External Lessor returns (14) - - - (14)
Disposals - - (1) - (1)
Reclassified - -1 - 1 -
As at 30 September 2020 108 26 4 1 139
Fleet split : UK - TUI Airways (56), Germany - TUI fly (35), Nordic - TUI fly Nordic (6), Netherlands - TUI fly Netherlands (8), Belgium - TUI fly Belgium (32) and externally leased (2) to Corsair
3636 TUI GROUP | Factbook | December 2020 Aircraft Commitments by Financing Type
Operating Lease Finance Lease Owned Held for Sale Total
As at 30 September 2020 108 26 4 1 139
Order book financing - - - - -
External Lessor deliveries 1 - - - 1
External Lessor returns (5) - - - (5)
Disposals - - - (1) (1)
Corsair - - (1) - (1)
Reclassified - - - - -
As at 31 December 2020 104 26 3 - 133
Fleet split : UK - TUI Airways (54), Germany - TUI fly (31), Nordic - TUI fly Nordic (7), Netherlands - TUI fly Netherlands (8), Belgium - TUI fly Belgium (32) and externally leased (1) to Corsair
3737 TUI GROUP | Factbook | December 2020 Aircraft order book deliveries – FY21 to FY25
FY21 FY22 FY23 FY24 FY25
B737-MAX 9 10* 16* 13 13 B787-9 - 1 - - - Firm order book deliveries 2020-2025 9 11 16 13 13
Financial Years (FY) ending 30 September; figures correct as at 31 December 2020
FY21 FY22 FY23 FY24 FY25 Supplementary to the above firm orders, TUI Group has further aircraft options: B737-MAX** - - - - 3 B787-9 - - 1 1 - Option order book deliveries 2020-2025 - - 1 1 3 Financial Years (FY) ending 30 September; figures correct as at 31 December 2020
* Assumed deferral of 3 x B737-MAX aircraft from FY22 to FY23 | ** There are additional Option MAX delivery positions from FY26 onwards
38 TUI GROUP | Factbook | December 2020 SUSTAINABILITY
TUI GROUP | Factbook | December 2020 Sustainability is at the heart of TUI - focus on further driving our sustainable business transformation TUI GROUP SUSTAINABILITY STRATEGY TUI CREDENTIALS (FY 20)
• TUI Group is represented in the sustainability indices FTSE4Good, We are mindful of the importance of travel and tourism for Ethibel Sustainability Index (ESI) Excellence Europe. many countries in the world and people living there. We • TUI participated again in the CDP Climate Change assessment and has partner with these countries and help shape their future – in been awarded a place on the prestigious CDP Climate Change A List for a committed and sustainable manner. 2019, recognising us as corporate leaders on climate action. • TUI signed the International Tourism Plastic Pledge to reduce plastic pollution and successfully removed 250 million pieces of single-use • After having proven a strong performance in FY19, the final year of TUI’s plastics by spring 2020. current strategy Better Holidays, Better World 2020 was negatively affected by the COVID-19 crisis. The next strategy is being developed in active dialogue with various external TUI CARE FOUNDATION COVID-19 RELIEF PROGRAMME and internal stakeholders – inclusion of all business units, group functions and committees • Focus on the long-term challenges facing the global tourism sector and • TUI Care Foundation set up a Corona Relief Fund to empower 100 TUI’s part of driving the sustainable transformation in our industry – charitable organisations in holiday destinations to offer emergency reflecting EU Green Deal decisions and based on the UN Sustainable support to local communities. Development Goals • Together with the NGO enpact, TUI Care Foundation initiated an • Objective: Consolidation of our position as the sustainability leader in our emergency aid programme for tourism businesses in developing and industry emerging countries - a total of 150 teams of young businesses will be supported with expert workshops, mentoring and financial support.
40 TUI GROUP | Factbook | December 2020